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Pfizer Drops 2002 Patent-Infringement Lawsuit against Eli Lilly & Co

Pfizer Inc., maker of the impotence drug Viagra, dropped a 2002 patent-infringement lawsuit against Eli Lilly & Co. over the rival medication Cialis. The agreement to drop the suit came a month after the U.S. Patent and Trademark Office said one aspect of the Pfizer patent in the case covered a treatment similar to a Chinese herb known as Horny Goat Weed. The companies filed a joint notice that they were dropping the case on March 15 in federal court in Wilmington, Delaware.

That claim was the only part of the patent asserted against Lilly. Other claims remain valid, so New York-based Pfizer can continue to use the patent to ward off would-be generic competitors to Viagra, which generated sales of $1.89 billion last year, including $962 million in the U.S. “We reached an agreement with Eli Lilly with respect to this litigation,” Chris Loder, a spokesman for Pfizer, said in a telephone interview. “The terms of this agreement are confidential.”

He declined to comment on whether the company will appeal the patent office’s decision to invalidate the claim. Mark Taylor, a spokesman for Indianapolis-based Lilly, didn’t immediately return a message seeking comment.